Hidden among the plethora of fiscal updates announced in the Budget were some genuinely positive measures for families and businesses.

One was the long-awaited review of the high income child benefit charge (HICBC), which included both interim measures and a longer-term solution.

A stopgap

From 6 April 2024 the adjusted net income threshold at which child benefit will begin to be withdrawn will increase from £50,000 to £60,000, the first rise since 2013.

The rate of taper has also been halved compared to where it is now. Where the benefit was previously withdrawn on a tapered basis in an income band between £50,000 and £60,000, this will now only occur between £60,000 and £80,000.

For individuals with income above £80,000, the tax charge will equal the amount of the child benefit payment. For those with income between £60,000 and £80,000, the rate at which HICBC is charged is halved, and will equal 1% for every £200 of income that is more than £60,000.